Karachi, February 26, 2026 – The Overseas Investors’ Chamber of Commerce and Industry (OICCI) on Thursday held detailed discussions with a visiting International Monetary Fund (IMF) delegation on pending tax refunds and key policy challenges facing foreign investors in Pakistan.
The dialogue brought together senior officials of the IMF mission, led by Iva Petrova and Mahir Binici, and chief executives of leading multinational companies operating in the country. The session focused on Pakistan’s macroeconomic outlook, investment climate, and reforms required to sustain growth and restore investor confidence.
Macroeconomic Stability Improving, Says OICCI
OICCI President Yousaf Hussain acknowledged the progress made in stabilizing Pakistan’s economy, highlighting improvements in fiscal consolidation, primary balance discipline, external account stability, rebuilding of foreign exchange reserves, moderation in inflation, and resilience of the financial sector.
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He noted that the recent improvement in Pakistan’s sovereign credit ratings reflects enhanced fiscal discipline and renewed international credibility under the ongoing reform program supported by the IMF.
Shift Needed from Stabilization to Export-Led Growth
While recognizing these achievements, Hussain emphasized the need to transition from short-term stabilization to a sustained export-led growth strategy.
“The priority now is to translate macroeconomic stability into higher productivity, employment, and investment. This requires moving away from fragmented measures toward a centrally coordinated, technocrat-supported, and well-sequenced medium-term reform agenda under a comprehensive National Economic Plan,” he said.
He added that such a plan should integrate fiscal, trade, industrial, energy, and human capital policies, supported by transparent monitoring, defined milestones, and stronger coordination between the federal and provincial governments.
Tax Reforms and Refund Clearance Critical
OICCI Secretary General M. Abdul Aleem stressed that Pakistan’s geo-economic positioning offers strong growth potential, but unlocking it requires policy coherence, regulatory predictability, and investment-friendly reforms.
He highlighted persistent structural challenges in Pakistan’s taxation framework, including a narrow tax base and excessive burden on documented and compliant sectors, particularly salaried individuals and corporate taxpayers.
“To restore competitiveness and investor confidence, Pakistan needs a rationalized and competitive tax and import tariff regime, supported by a consultative tax policy framework and a clear medium-term direction,” Aleem said.
He further emphasized the urgent need to ensure timely clearance of pending tax refunds, avoid retrospective taxation, simplify compliance procedures, and strengthen documentation and enforcement across the economy.
OICCI Reaffirms Support for Reforms
OICCI reaffirmed its commitment to continued engagement with policymakers, regulatory bodies, and international development partners, including the IMF, to support reforms that sustain macroeconomic stability and promote long-term foreign and domestic investment in Pakistan.
The chamber reiterated that addressing pending tax refunds and regulatory bottlenecks would be critical in strengthening business confidence and accelerating economic growth.